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another general is under scrutiny and the pentagon is combing through thousands of e-mails that they call harmful. tracie potts has the latest on capitol hill. >> reporter: overnight, leon panetta announced john allen is under investigation. the pentagon discovered 20,000 pages of e-mails a senior official called inappropriate between allen and jill kelly. kelly is the woman who felt harassed over the anonymous e-mails later linked to paula broadwell. broadwell and petraeus were found to have an affair. and petraeus resigned. >> it is important if you are an official of the cia, you have the personal integrity that comes first and foremost. >> reporter: broadwell talked about working with petraeus in afghanistan. >> i took that seriously. >> reporter: the pentagon won't say what the relationship was with allen and kelly, but he is still on the job for now. in washington preparing for a senate confirmation hearing that has been put on hold. the pentagon has conducted a search of the home. jill kelly's brother took issue with it. >> she took issue with it and she did not realize it would sp
doesn't act. plus, another $500 billion in cuts at the pentagon. boeing, the military's second largest supplier, already announced its second round of executive layoffs. >> nobody wants to see this fiscal cliff without a deal because the cuts are severe and the tax increases are severe. and so we've got to find a path forward. >> reporter: on capitol hill, leaders signaled compromise. >> compromise is not a dirty word. i want to work together. but i want everyone to also understand, you can't push us around. >> i'm not suggesting we compromise on our principles. but i am suggesting that we commit ourselves to creating an atmosphere where we can seek common ground where it exists. >> reporter: post-election, the same president, the same balance of power in congress and the same problem that divided a nation. tracie potts, nbc news, washington. >>> the stock markets are skittish over the fiscal cliff. our scott mcgrew says they are still down a little bit. baa little bit of calm for investors just a bit. >> good morning. the dow industrials down another 60 points this morning. the nasdaq
the information. the pentagon had suspended her security clearance. leon panetta suggested general john allen who said he will cooperate may be the last person involved. >> i am not aware of any others that could be involved in this issue at the present time. >> reporter: despite the probe, general petraeus who stepped down from the cia is scheduled to testify tomorrow on the deadly attacks in benghazi. republicans accuse united nations ambassador susan rice of misleading the public when she said protests, not terrorists, prompted that attack. >> there's a ream of evidence. >> she should have known what the situation and circumstances were. >> she has a lot of explaining to do. >> if senator mccain and senator graham and others want to go after somebody, they should go after me. but to smurch her reputation is outrage. >> reporter: the president said this will not deter him from nominating susan rice. john mccain says if that's the case, he will block it. tracie potts, nbc 11 news, washington. >>> back here at home a high-flying start-up is grounded. >> the eureka zeppelin will fly no more. the z
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